Stocks at record high: Over 330 stocks, including some of the heavyweights, such as TCS, Infosys, ITC, HCL Tech, Bharti Airtel, Sun Pharma and Bajaj Finserv, hit their fresh 52-week highs in intraday trade on the BSE. Among these, TCS and Bharti Airtel hit their all-time highs, according to BSE data.

Other large stocks that hit their 52-week highs included Bajaj Auto, BPCL, Apollo Hospitals, Cipla, Divi’s Labs, HDFC Life, SBI Life, ICICI Lombard General Insurance Company, Lupin, Naukri, Persistent Systems, and PI Industries. Overall, 332 stocks hit their one-year highs on the BSE on Monday.

These stocks surged to their one-year highs, driven by positive market sentiment and anticipation of the rate reduction cycle’s onset. India’s robust economic growth outlook and a strong influx of retail investors are long-term positives for the Indian stock market.

The Sensex hit its fresh record high of 82,725.28, while the Nifty 50 also made a fresh peak of 25,333.65 during the session on Monday, September 2.

Consolidation ahead?

The Nifty 50 has been in the green for the last 13 consecutive sessions. Some experts believe the market is ripe for consolidation.

Mandar Bhojane, an equity research analyst at Choice Broking, pointed out that at the start of September, the Nifty 50 showed a strong bullish trend with 12 consecutive higher closes, forming higher highs and higher lows. However, technical indicators like RSI at 69.85 and Stoch RSI at 100 suggest the market is in the overbought zone, indicating a potential for a small correction or profit booking from its all-time highs.

“The Nifty 50 has formed a support base around the 25,100 and 25,000 levels, which can act as immediate support and a buying opportunity if there is a reversal. If Nifty closes above the 25,300 level, short-term targets could be 25,500 and 25,700,” said Bhojane.

“Open Interest (OI) data shows the highest OI on the call side at the 25,500 and 25,700 strike prices and on the put side at the 25,000 strike price. This data, coupled with the overbought conditions, hints at a possible correction in the September series,” Bhojane said.

According to V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, the market has entered a zone of steady but mild up-move caused by accumulation of quality largecaps. FIIs turning buyers last week mainly due to some large bulk deals also has improved sentiments in the market.

“FY25 Q1 GDP print at 6.7 per cent indicates mild sluggishness in the economy. This will warrant rate cuts by the RBI in the next monetary policy meeting. Even though banks are struggling for deposits, rate cuts will improve the prospects for banking stocks,” he added.

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